Building-to-Grid Technology Market Expected to Reach $147.8 Billion by 2034

According to a new report published by Allied Market Research, titled, “Building-to-Grid Technology Market," The building-to-grid technology market size was valued at $54.9 billion in 2024, and is estimated to reach $147.8 billion by 2034, growing at a CAGR of 10.5% from 2025 to 2034.

Introduction

Building-to-grid technology is a transformative energy management paradigm that connects smart buildings with the power grid, enabling a two-way flow of information and energy. At its core, B2G technology facilitates dynamic interactions between commercial, industrial, and residential buildings and the electrical grid, allowing buildings not just to consume electricity but also to contribute energy back to the grid or modulate their energy consumption based on real-time grid conditions.

Smart meters and sensors play a foundational role in building-to-grid technology industry by enabling real-time monitoring and data collection across various building systems. Smart building-to-grid systems devices measure energy consumption, production, voltage, frequency, and other critical parameters such as indoor temperature, occupancy, and appliance usage. Smart meters can communicate this data continuously to both building management systems and utility operators, fostering greater transparency and enabling more precise control over energy use. Additionally, smart grid integration embedded throughout a building enhance situational awareness, helping facility managers identify inefficiencies, track equipment performance, and implement automated control strategies that align with both building needs and grid conditions.

Market Dynamics

Growth in distributed energy resources (DERs) is expected to drive the growth of the building-to-grid technology market share. Growth in distributed energy resources (DERs) is a major driver behind the rapid adoption of building-to-grid (B2G) technology. Distributed energy resources refer to small-scale units of local power generation connected to the grid at the distribution level in smart Infrastructure. These include rooftop solar panels, residential wind turbines, battery energy storage systems, microturbines, and even small-scale combined heat and power (CHP) systems. As more buildings incorporate these technologies, building automation systems gain the ability not only to consume but also to generate and store electricity. This transforms buildings from passive energy consumers into active participants in the energy ecosystem capable of supplying power back to the grid or adjusting their demand in real time. Rooftop solar, for instance, can reduce reliance on grid-supplied electricity during daylight hours, while home batteries can store excess generation for use during peak pricing periods or grid outages. In April 2024, the UK government launched initiatives to attract global green investors, allocating $375 million (£300 million) for offshore windfarm development and hosting a 60-country energy summit in London to reinforce its commitment to clean energy.

However, data privacy and cybersecurity risks is expected to hamper the growth of the building-to-grid technology market. Data privacy and cybersecurity risks represent a significant restraint to the widespread adoption of Building-to-Grid (B2G) technology. As buildings become more digitally connected to the grid through smart meters, sensors, energy management systems, and cloud platforms, they create new entry points for potential cyberattacks. These systems handle a vast amount of sensitive data, including real-time energy consumption patterns, occupancy schedules, and device controls, all of which could be exploited if not properly secured. The vast amounts of data collected and transmitted by smart grids and connected buildings include sensitive information such as energy consumption patterns, appliance usage, and even occupancy data. If not properly secured, this data can be intercepted, manipulated, or sold, raising significant privacy concerns for both individuals and organizations. Data breaches can erode public trust and expose utilities to regulatory penalties and reputational damage.

Segments Overview

For the purpose of analysis, the building-to-grid technology market scope covers segmentation based on platform, component, end-use, and region. The report provides information on various platforms including smart sensing, smart metering, control technology, energy storage, and others. Furthermore, the major components covered in the study include hardware, software, and service. Moreover, it outlines the details of the end-uses such as commercial, industrial, and residential. In addition, it analyzes the current market trends across different regions such as North America, Europe, Asia-Pacific, and LAMEA.

On the basis of platform, the smart sensing segment is expected to be the fastest growing segment in the market, growing with the CAGR of 11.1% during the forecast period. The integration of smart sensing in B2G systems enhances energy efficiency and grid stability. For example, sensors linked to HVAC systems can detect occupancy levels and adjust temperature settings accordingly, reducing energy consumption without compromising comfort. When synchronized with grid signals, these sensors allow buildings to respond instantly to dynamic pricing or load balancing needs. In Feburary 2025, Singapore’s Smart Nation Sensor Platform (SNSP) is a large-scale initiative that leverages a network of approximately 110,000 lampposts embedded with wireless sensors to gather real-time data on various aspects of urban life, including housing conditions, public amenities, and infrastructure usage. These sensors serve as critical tools for the government, enabling data-driven decision-making in urban planning, proactive infrastructure maintenance, and swift incident response. All these factors provide lucrative opportunities for building-to-grid market forecast.

On the basis of component, the software segment is the fastest-growing segment in the building-to-grid technology market representing a CAGR of 10.8% during the forecast period. Cloud-based platforms and IoT-enabled devices enhance the scalability and flexibility of B2G software. They allow building managers and utilities to monitor and control energy operations remotely, integrating multiple buildings into a single virtual power plant (VPP). This aggregated control allows for more effective participation in demand response programs and wholesale energy markets. Artificial Intelligence (AI) and machine learning (ML) further improve decision-making by predicting demand, detecting anomalies, and recommending energy-saving actions, making the entire ecosystem more intelligent and responsive.

On the basis of end-use, the industrial segment is the fastest growing segment in the market growing with the CAGR of 10.9% during the forecast period. In the industrial segment, building-to-grid technology is closely tied to the adoption of smart energy systems, such as advanced metering infrastructure, energy management systems (EMS), and on-site renewable energy generation (like solar panels or wind turbines). These technologies enable real-time monitoring and control of energy usage, allowing industries to reduce peak load, shift energy use to off-peak times, and participate in demand response markets. By doing so, they can lower operational costs and reduce dependency on fossil fuels, aligning with growing sustainability goals.

Regional Analysis

Based on region, Asia-Pacific is the fastest-growing region in the building-to-grid market trends with the CAGR of 10.9% during the forecast period. Building-to-grid technology, which enables buildings to interact dynamically with the power grid through demand response, distributed energy resources (DERs), and smart control systems, is gradually gaining momentum in Asia-Pacific countries. The region, characterized by rapid urbanization, rising energy demand, and an increasing focus on decarbonization, presents a fertile ground for B2G adoption. Countries like Japan, South Korea, China, Australia, and Singapore are leading in integrating B2G systems, largely driven by robust governmental policies, smart city initiatives, and investments in renewable energy.

Competitive Analysis

The key players operating in the building-to-grid market analysis into Siemens AG, Schneider Electric, ABB Ltd., General Electric, Honeywell International Inc., Landis+Gyr Group AG, Enphase Energy, S&C Electric Company, Itron Inc, and Oracle.

Key Market Insights

• On the basis of the platform, smart metering dominated the building-to-grid technology market, growing with a CAGR of 10.7% during the forecast period.
• On the basis of component, the software segment was the most lucrative segment, representing the CAGR of 10.8% during the forecast period.
• On the basis of end-use, the commercial segment dominated the building-to-grid technology market in 2024.
• Region-wise, Asia-Pacific dominated the market, accounting for more than one third of the market share in 2024.